January 16, 2008

Can Congress Shame Colleges into Decreasing Tuition?

Posted in Legislation Affecting Students, Saving for College at 1:16 PM by Joe From Boston


It can’t, according to a new opinion piece by the Chronicle of Higher Education.

Congress is currently considering a piece of legislation that would require schools to report any tuition increases – the thought being that colleges and universities won’t want the scrutiny and shame that would result.

Why not?

“For one, some institutions will respond by reducing their discounts to students to keep their tuition increases down, while others may shift their biggest percentage increases to living expenses that would not be monitored under the proposal. And as already noted in the news media, most of the colleges with the highest tuition levels would not even have the federal spotlight shine on them because their endowments allow them to keep tuition increases low and help them provide more aid.

Nor is the proposal to require institutions with the highest tuition increases to set up cost-cutting committees likely to do much good. The amount that colleges spend for each student generally does not correlate with tuition increases over time. The evidence and logic suggest that college pricing decisions are more a function of market forces or revenue effects, like the amount of state support that institutions receive or the growth of their endowments.”

Read the whole article here.  A paid subscription may be required to view the entire article.

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2 Comments »

  1. nelson smith said,

    I feel colleges are taking advantage of theses students to indirectly make more money through them and theses federal loan companies are just trying to make a buck were they can out of the student because we all know the financial markets are not in good shape and there are plenty of students to go after long term

  2. […] student wrote an interesting post today onHere’s a quick excerptThe amount that colleges spend for each student generally does not correlate with tuition increases over time. The evidence and logic suggest that college pricing decisions are more a function of market forces or revenue effects, … […]


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